The Inn is an Entertainment building in Tropico 2 that provides high-end drinking, feasting, and resting for up to 12 pirates or wealthy captives. Rum and pastries can also be served here to increase the drinking and feasting satisfaction bonuses, respectively. Your island requires at least one skilled server and skilled cook to be able to build the inn. It can be staffed by unskilled captives.
Compared to the hotel, the inn provides much less sleeping satisfaction for wealthy captives and radiates anarchy but is cheaper and potentially much more profitable if price is set to Gouge em' as Wealthy Captives will frequently visit the inn for some badly needed rest.